Analysis of Marriott with Hilton and Starwood

Added on - 14 Feb 2020

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ESSAY
`Table of ContentsKey performance indicators analysis of Marriott with its competitor’s Hilton and Starwood.................................................................................3Marriott’s business model canvas............................................................................................................................................................................84Cs including SWOT analysis..................................................................................................................................................................................11McKinsey’s 7s synthesis framework.......................................................................................................................................................................13Ansoff Matrix.........................................................................................................................................................................................................16PART 2........................................................................................................................................................................................................................17Two key operational areas of Marriott and developing a process map.................................................................................................................17Areas of risk...........................................................................................................................................................................................................18Risk management plan...........................................................................................................................................................................................18REFERENCES..........................................................................................................................................................................................................18
Key performance indicators analysis of Marriott with its competitor’s Hilton and StarwoodKey performanceIndicatorsMarriott International Corporation 19272014%change2013%change2012%change2011%change2010Revenue8370782.52.48%8168061.49.53%7457441.8-2.90%7680409.31.55%7563537.4Net profit456,886.0014.23%399,969.2010.97%360,436.70191.93%123,465.20-58.33%296,304.90Gross profit1,192,879.005.84%1127069.89.94%1,025,130.002.62%998,945.804.68%954,256.90Gross margin14.253.28%13.800.38%13.755.69%13.013.09%12.62Net margin5.4611.46%4.901.31%4.83200.66%1.61-58.97%3.92Number of employee1235000.41%123,000.00-3.15%127,000.005.83%120000-6.98%129000Revenue per employee3.7013.77%3.2514.58%2.84175.84%1.03-55.21%2.30ROA11.0315.74%9.532.25%9.32250.38%2.66-50.92%5.42EPS2.5427.00%216.28%1.72212.73%0.55-54.55%1.21Current ratio0.76-8.43%0.830.00%0.83-5.68%0.88-27.27%1.21Quick ratio0.39-13.33%0.4512.50%0.45.26%0.38-33.33%0.57Debt to equity ratio1.57-17.80%1.91-3.05%1.97-2.96%2.03-8.56%2.22Assets turnover ratio30.791.92%30.21-7.73%32.74-26.23%44.38162.91%16.88Operating expenditures7,667,554.201.81%7,531,049.70634.64%1,025,130.002.62%998,945.80-85.96%7,113,904.40Total assets4,408,497.207.20%4,112,341.904.45%3,937,149.603.53%3,802,844.10-33.72%5,737,553.10occupancy %73.10%1.81%71.80%1.27%70.90%0.14%70.80%--Revenue per $112.25-8.23%122.32-1.53%124.22-3.90%129.26--
Hilton Incorporation, 1919KeyperformanceIndicators2014%change2013%change2012%change2011%change2010Revenue63721342.45%6219968.56.26%58533796.88%5476602.34.92%5219624Net profit408,34654.00%265,15519.37%222,12040.80%157,75790.50%82,810.10Gross profit103755021.37%85488621.50%70359213.52%619805-29.03%873388Gross margin16.2818.47%13.7414.34%12.026.21%11.32-32.36%16.73Net margin6.4150.32%4.2612.34%3.7931.74%2.8881.57%1.59Number ofemployee1570003.29%152000------Revenue peremployee2.6049.10%1.74------ROA2.59%50.58%1.72%30.30%1.32%47.05%0.90--EPS0.4122.22%0.18-25.00%0.2450.00%0.16-164.00%-0.25Current ratio1.110.00%1.11-7.50%1.2-12.41%1.37--Quick ratio0.744.23%0.714.41%0.68-1.45%0.69--Debt to equityratio2.43-16.21%2.9-57.16%6.77-22.89%8.78--Assetsturnover ratio0.411.11%0.365.88%0.349.10%0.31--Operatingexpenditures5334584-0.57%53650824.18%51497876.03%485679811.75%4346236Total assets167766924.35%16077719-4.05%16755502-4.66%17574159--occupancy %78.40%3.29%75.90%------Revenue per $$156.187.71%$145------
KeyperformanceIndicatorsStarwood incorporation 19802014% change2013% change2012% change2011% change2010Revenue3630211-7.09%3907048-2.05%398870313.74%35068216.89%3280703Net profit384076-5.33%40572014.40%35463616.31%304914-1.19%308597Gross profit2593875-3.13%26777496.92%25045349.92%22784367.67%2116186Gross margin71.454.25%68.549.15%62.79-3.36%64.970.72%64.50Net margin10.581.88%10.3816.80%8.892.26%8.69-7.56%9.41Number ofemployee180,400-0.55%181,400---100.00%1540006.21%145000Revenue peremployee2.13-4.91%2.24------ROA7.30%-6.84%7.83%13.36%6.91%19.16%5.80%-0.35%5.82%EPS2.1912.89%1.94-15.65%2.384.00%1.2548.81%0.84Current ratio0.95-8.65%1.0410.64%0.94-25.98%1.274.96%1.21
Quick ratio0.85-7.96%0.9221.99%0.76-12.32%0.862.89%0.84Debt to equityratio1.59250.09%0.45-14.14%0.53-39.93%0.88-32.46%1.30Assets turnoverratio0.65-11.38%0.741.24%0.7327.64%0.578.50%0.53Operatingexpenditures3095054-6.66%3316039-5.09%349398011.84%31239648.00%2892531Total assets55605504.85%5303553-3.25%5481784-10.89%6151470-1.48%6244052occupancy %70.10%2.04%68.70%1.03%68.00%0.00%68.00%--Revenue per $$123.083.30%$119.152.27%$116.511.70%$114.56--Important highlightsProfitability ratio measures business ability to generate profits through their dailybusiness operations or activities (Jami and Bahar, 2016). Gross margin and netmargin are the two most common used profitability ratios that help to evaluatepercentage of gross profit and net profit on total turnover.Marriott’s GM got shows a continuous upward movement as it got increased from12.62% to 14.25% in the year 2014. It reflects that Marriott hotel is generatingincreased return on their total sales throughout the years in 2014; the percentageincrease in GM is 3.28%. However, comparatively the ratio is higher in StarwoodIncorporation and Hilton Incorporation to 71.45% and 16.28% respectively thatindicates that both these competitors are generating higher profit on their total sales.Liquidity ratio measure that company has enough resources or not to meet theirshort-term obligations, especially creditors. Current ratio depicts relationshipbetween current assets and current liabilities whereas quick or acid test ratio measurebusiness ability to make deferral payments without considering inventory position.Marriott’s CR got decreased from 0.88:1 to 0.76 in 2014 indicating that liquidityposition of the company has declined over the years. Moreover, 2:1 is considered asideal industrial ratio and Marriott’s ratio is still far away than this target ratio whichdepicts that hotel is not able to pay their short-term business obligations timely andeffectively (Parsian and Shams, 2014). However, on the other side, Hilton andStarwood’s CR are comparatively higher to 1.11 and 0.95 demonstrate thatMarriott’s competitors are more able to pay their short-term liabilities on right time.123450.002.004.006.008.0010.0012.0014.00Gross margin123450.002.004.006.008.0010.0012.0014.00Net margin
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